US consumer spending ticked up in January as incomes soared

 WASHINGTON (AP) — Americans lifted their spending just 0.2 percent in January, while their incomes jumped because of last year’s tax cuts.
The Commerce Department says the modest spending increase followed gains of 0.4 percent in December and 0.8 percent in November. Incomes rose 0.4 percent, boosted by $30 billion in tax cut-related bonuses the government estimates were paid out in January.

After-tax income jumped 0.9 percent, the most in a year, lifted by the Trump administration’s tax cuts. With consumers holding back on spending, the savings rate rose. Savings had fallen to a 12-year low in December.

There were some signs of inflation pressures. A key inflation gauge, excluding the volatile food and energy categories, rose 0.3 percent, the most in a year.



You must be logged in to post a comment Login